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Jumia Technologies AG (JMIA): Are Hedge Funds Right About This Stock?

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. What do these smart investors think about Jumia Technologies AG (NYSE:JMIA)?

Jumia Technologies AG (NYSE:JMIA) shares haven’t seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 6 hedge funds’ portfolios at the end of the first quarter of 2020. At the end of this article we will also compare JMIA to other stocks including Atlantic Power Corp (NYSE:AT), IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP), and Allied Motion Technologies, Inc. (NASDAQ:AMOT) to get a better sense of its popularity.

Video: Watch our video about the top 5 most popular hedge fund stocks.

In the eyes of most stock holders, hedge funds are seen as unimportant, old financial tools of years past. While there are more than 8000 funds with their doors open at present, Our experts look at the masters of this group, about 850 funds. These hedge fund managers direct the lion’s share of the smart money’s total capital, and by following their inimitable investments, Insider Monkey has revealed several investment strategies that have historically outperformed Mr. Market. Insider Monkey’s flagship short hedge fund strategy outstripped the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Our portfolio of short stocks lost 36% since February 2017 (through May 18th) even though the market was up 30% during the same period. We just shared a list of 8 short targets in our latest quarterly update .

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At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we’re going to view the latest hedge fund action encompassing Jumia Technologies AG (NYSE:JMIA).

What have hedge funds been doing with Jumia Technologies AG (NYSE:JMIA)?

At the end of the first quarter, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards JMIA over the last 18 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is JMIA A Good Stock To Buy?

Among these funds, Point72 Asset Management held the most valuable stake in Jumia Technologies AG (NYSE:JMIA), which was worth $6.3 million at the end of the third quarter. On the second spot was 683 Capital Partners which amassed $0.9 million worth of shares. Citadel Investment Group, Citadel Investment Group, and PEAK6 Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position 683 Capital Partners allocated the biggest weight to Jumia Technologies AG (NYSE:JMIA), around 0.11% of its 13F portfolio. Point72 Asset Management is also relatively very bullish on the stock, designating 0.05 percent of its 13F equity portfolio to JMIA.

Judging by the fact that Jumia Technologies AG (NYSE:JMIA) has faced a decline in interest from the smart money, logic holds that there exists a select few funds who were dropping their full holdings by the end of the first quarter. Intriguingly, Anand Parekh’s Alyeska Investment Group said goodbye to the biggest investment of the “upper crust” of funds tracked by Insider Monkey, valued at about $1.8 million in stock. Nancy Zevenbergen’s fund, Zevenbergen Capital Investments, also cut its stock, about $1.2 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks similar to Jumia Technologies AG (NYSE:JMIA). We will take a look at Atlantic Power Corp (NYSE:AT), IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP), Allied Motion Technologies, Inc. (NASDAQ:AMOT), and Legacy Housing Corporation (NASDAQ:LEGH). All of these stocks’ market caps are closest to JMIA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AT 10 22041 -2
IRCP 4 7670 0
AMOT 13 36277 2
LEGH 4 5281 0
Average 7.75 17817 0

View table here if you experience formatting issues.

As you can see these stocks had an average of 7.75 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $8 million in JMIA’s case. Allied Motion Technologies, Inc. (NASDAQ:AMOT) is the most popular stock in this table. On the other hand IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP) is the least popular one with only 4 bullish hedge fund positions. Jumia Technologies AG (NYSE:JMIA) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.9% in 2020 through June 10th and still beat the market by 14.2 percentage points. A small number of hedge funds were also right about betting on JMIA as the stock returned 111% during the second quarter and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.